Rossiiskaya Gazeta: "Government helps companies avoid bankruptcy"
Vladimir Putin resolves corporate problems in two days
Yesterday Prime Minister Vladimir Putin held a special meeting at the Government House to clear up issues at the Bogoslovsky Aluminium Plant (BAZ) and the Taganrog Auto Plant (TagAZ).
The heads of United Russia's regional reception offices told Putin about the problems at these companies on Tuesday. Anatoly Sukhov from the Sverdlovsk Region brought up some of the problems. "We have a single-industry city in the region, Krasnoturyinsk. It has one company – the Bogoslovsky Aluminium Plant. Their corporate office plans to shut it down. There are several other nearby plants that depend on BAZ."
"There is a facility in the Urals assembling the final product (cargo wagons, locomotives, engineering and aviation), and now there is the feeling that this facility is threatened," Sukhov said. "The problem lies in the high electricity rates required for aluminium production. It adds up to 45% of the prime cost."
Speaking at yesterday's meeting, Putin reminded the audience that the aluminium company was started back in Soviet times as part of a vertically integrated complex with its own power plant that became a separate unit further on. "The power industry since that time has had a life of its own. Eelectricity rates for companies have increased significantly from 1.45 roubles to 2 roubles per kWt. This was quite a price hike for the aluminium company, which almost immediately began incurring losses."
"The problem will be resolved. RUSAL, which owns the plant, will buy and upgrade the power station to maintain the plant. The cost of the deal will be set in the near future," Putin said.
"IDGC Holding, which manages the regional grid, will transfer this business to the Federal Grid Company (FGC), and the latter will cover the costs of maintaining the system access lines," the prime minister explained. "It's not a great distance – about 1.5 km – so it won't cost much, but it is precisely the exemption from these costs that the regional authorities should take into account to avoid passing regional grid maintenance costs on to the companies," Putin pointed out. When the local authorities set the rates, it is impermissible to put individual companies on the verge of bankruptcy, he summed up.
Sverdlovsk Region Governor Alexander Misharin wanted to help the plant also but got sidetracked by a car accident. "I have spoken with him over the phone. He's okay, getting better. I hope he will be at work by the end of the month," Acting Governor Anatoly Gredin said.
The second plant that was saved at yesterday's meeting was the Taganrog Auto Plant that is barely able to cope with the debt it had amassed during the global economic crisis. Putin discussed this company at his meeting with heads of United Russia's reception offices a couple of days ago. Having praised the company, Zoya Stepanova from the Rostov Region told Putin about the company's request to restructure its debt. "I must look at the details," he replied.
Yesterday Putin announced his decision: "During the crisis you took out loans with a high interest rate. Today this rate is excessive. VTB bank is prepared to meet the company halfway." VTB will restructure the debt and reduce the interest on the loan by almost two times. Putin urged the plant to increase localisation and to start modernising. "According to the available documents, the plant is capable of producing up to 300,000 cars and this is a goal to strive for," Putin said. This year the plant will manufacture about 32,000 cars.
At the end, Putin urged all those present at the meeting not to complain: "I'd like to thank you for the work that was done in a very short span of time and on a professional level. I'd ask you not to complain about your arms being twisted – your arms are huge and strong, so you won't lose anything." Everyone will gain from preserving these plants and, most importantly, the workers will not lose their jobs.
Apropos
Prime Minister Vladimir Putin met with Venezuelan Vice President Elías Jaua Milano. Documents on a loan to the Venezuelan government and the formation of an oil joint venture were signed during the visit.
Kira Latukhina
